Fair Isaac shares quickly turn negative, down 1.6%

Fair Isaac shares quickly turn negative, down 1.6%

Fair Isaac (FAI) shares experienced a significant drop on July 2, 2025, falling by 1.6%. This decline comes amidst a rise in short interest, which has increased by 10.16% since the company's last report [1].

Fair Isaac's short interest, which represents the number of shares sold short but not yet covered or closed out, has grown to 868,000 shares, equating to 4.77% of all regular shares available for trading. This increase in short interest signals a growing bearish sentiment among investors. Traders are betting that the stock price will fall, a strategy known as short selling [1].

The average time it would take for traders to cover their short positions, based on Fair Isaac's trading volume, is 3.84 days. This metric indicates the potential pressure on the stock if short sellers decide to close their positions [1].

Comparing Fair Isaac's short interest to its peers, the company's 4.77% short interest percentage of float is significantly higher than the average of 2.91% for its peer group. This suggests that Fair Isaac is more heavily targeted by short sellers than many of its industry counterparts [1].

While an increase in short interest can sometimes indicate a bullish trend, as it can lead to a short squeeze, the current data suggests that investors are more bearish on Fair Isaac's future prospects. Traders should be cautious, as the stock's recent performance and the elevated short interest may indicate potential volatility ahead.

References:
[1] https://www.benzinga.com/insights/short-sellers/25/07/46283259/how-do-investors-really-feel-about-fair-isaac